Agility profit plummets as company restructures
Agility has reported a year on year revenue fall of 21% and net profit decline of 56% for its first quarter.
Revenue came in at KD 318.51 million, compared with KD 403.13 million last year, and net profit was KD 7.70 million, compared with KD 17.46 million a year ago.
According to Agility, the results represent a new financial benchmark for the company, following the loss of lucrative US government defense contracts.
“After a year of adjustment in 2010, which included a transition away from government business, 2011 represents a new financial benchmark for Agility,” said Tarek Sultan, Agility’s chairman and managing director.
“Although our results this quarter reflect costs related to the restructuring of our defense and government business, it is important to note that today, we are first and foremost a commercial logistics provider.”
Focusing on the positive, Agility noted that revenue in its core business, Global Integrated Logistics (GIL), increased 12.3% year on year in Q1 of 2011.
“Our commercial business is steadily growing,” said Sultan. We are acquiring new customers, expanding our business with existing customers, and transforming our operating platform to execute more efficiently.
“We also promised discipline, and we are delivering on that promise. We have reduced SG&A costs by 20.43% this quarter and are continuing our efforts to streamline the organisation while improving productivity."
“We enter 2011 with both a clear understanding of where we need to go as a company and deep determination to achieve our goals.”